FAQ — Company, residency and taxation in Andorra

Reserving the company name, foreign investment authorisation, depositing the capital in an Andorran bank account, signing the articles of association before a notary, registration with the Companies Register, and obtaining the NRT and business licences. ProGestió manages each step for a smooth, compliant process.

€3,000 for an SL (Societat Limitada) and €60,000 for an SA (Societat Anònima). The capital is deposited before signing before the notary, then remains available for the business.

For a standard file, allow two to three months between the first steps and going live — authorisation, bank, notary, and commercial opening included. A complete, consistent file clearly shortens this timeline.

Founders' passports, proof of address, a description of the project (business plan), articles of association, and proof the capital has been deposited. Additional documents may be required depending on the sector.

Yes. A non-resident can own an Andorran company once foreign investment authorisation has been obtained. Residency becomes relevant to fully benefit from Andorran personal taxation.

Yes, since foreign investment was opened up in 2012, subject to prior administrative authorisation. This is now the most common situation among our clients.

The SL for most projects, the SA for larger-scale structures, and variants depending on purpose: a shareholding company, an asset-holding company, or forms specific to regulated sectors.

Register and business licence fees, bookkeeping and filing accounts, tax returns (corporate tax, IGI) and social security filings. Our management package covers all of this so nothing gets missed.

International trade and e-commerce, services and consulting, technology, wealth management, tourism, and real estate. The deciding factor remains the economic coherence of your project with an Andorran base.

A company whose purpose is to hold and manage shareholdings in other companies, in Andorra or abroad. It centralises your investments, optimises the taxation of cash flows, and makes wealth planning easier.

Corporate tax capped at 10% with a favourable regime for shareholding income, a possible exemption on dividends received from subsidiaries under conditions, and redistributed dividends exempt for the Andorran resident shareholder.

Yes — that's its primary purpose: centralising French, Spanish, or international shareholdings, in line with applicable tax treaties.

They benefit from an exemption subject to shareholding conditions and the tax treaties in force with the subsidiary's country. Each flow needs to be worked out before setting up the structure — that's the core of our structuring work.

Yes: it brings family assets together, organises governance among heirs, and optimises succession — especially since Andorra applies no inheritance or gift tax.

An operating company carries out a direct economic activity; a holding company holds shareholdings. The two are often combined: an operating company owned by a holding company.

The same as for any company (investment authorisation, capital, notary), with a corporate purpose of holding shares. Substance — effective management in Andorra — is essential for the structure to hold up.

Yes. Andorra has signed double taxation treaties with France, Spain, Luxembourg, Portugal, and other countries, providing certainty for cross-border cash flows.

Yes, both in Andorra and abroad: the structure centralises ownership and optimises the treatment of rental income and capital gains, according to the rules of the country where the property is located.

Structuring with no real substance exposes you to neighbouring countries' anti-abuse rules. Accounting compliance, documented cash flows, and effective management in Andorra are the conditions for a lasting structure — that's what we require on every file.

Active residency is aimed at people working in Andorra (employees or directors of their local company); passive residency is aimed at investors and retirees living off their income, with a required investment in the country and a minimum presence of 90 days a year.

Carrying out an activity in Andorra (employment contract or managing your company), registering with CASS, having accommodation, and genuinely living there for more than 183 days a year. The file is handled alongside setting up the company.

A permanent and genuine investment of €600,000 in Andorran assets (real estate, shareholdings, securities, public debt, life insurance), of which a non-remunerated deposit of €50,000 with the AFA (+ €12,000 per dependant) is deducted from that amount and returned when the authorisation ends, sufficient means, private health insurance, and a minimum of 90 days' presence per year.

Yes: Andorran real estate is an eligible asset for the €600,000 investment required for passive residency, provided an amount above €600,000 is allocated to each property counted. It's the most common choice among our clients.

Passport, criminal record certificate, evidence of means and accommodation, health insurance, and depending on status: employment contract, company articles of association, or proof of investment. We prepare the complete file with you.

A complete file is generally processed in 2 to 4 months, including the medical examination and issuing the permit. Coordinating it with setting up a company, where there is one, saves valuable time.

No: a minimum of 90 days for passive residency, more than 183 days for active residency. Note: tax residency — the one that matters to the French or Spanish tax authorities — follows its own criteria, which we secure together with you.

Personal income tax capped at 10%, Andorran company dividends exempt, no wealth tax, and no inheritance or gift tax.

The first permits are valid for 1 to 2 years depending on status, then renewable for increasing periods up to long-term resident status.

Updated evidence, proof of continued presence and means, and compliance with tax obligations. We manage the timeline and the renewal file for our clients.

Generally lower than France (fuel, consumer goods, taxation), slightly higher than Spain on certain items — largely offset by the level of services and after-tax purchasing power.

Gentle taxation, exceptional safety, nature and quality of life, modern infrastructure, and both France and Spain less than three hours away. The country suits entrepreneurs as much as families and retirees.

Yes — one of the best-ranked in the world. The Nostra Senyora de Meritxell hospital and private clinics provide a high standard of care, with CASS cover for working residents.

Among the safest in the world: crime is almost non-existent, and institutional stability is strong. An ideal environment for families and for wealth.

The market is dynamic but tight, especially in Andorra la Vella and Escaldes. It's strongly advisable to plan your search ahead — and get support — particularly to coordinate accommodation with your residency file.

Catalan is the official language, but Spanish, French, and Portuguese are commonly spoken, and English is gaining ground in business. It's very easy for a French speaker to settle in.

Three school systems coexist — Andorran, Spanish, and French — plus international schools. The University of Andorra offers courses in economics, IT, and health.

No: working requires a permit tied to a local contract or setting up a business, meaning active residency. That's precisely the process we organise.

Tourism and hospitality, retail, banking and finance, business services, and a fast-growing technology sector.

Corporate tax, personal income tax (IRPF), capital gains taxation, and IGI, the equivalent of VAT. Overall, it remains among the lightest tax systems in Europe.

10% at most, with specific regimes for certain activities and possible reductions for new businesses.

No — there's no wealth tax in Andorra. A decisive advantage for large estates, particularly compared with the French IFI.

None: no inheritance tax and no gift tax. Wealth transfer is organised without tax friction — often through an asset-holding structure or a family holding company.

A standard rate of 4.5% — the lowest in Europe — with reduced rates for healthcare, education, and food, and a higher rate for banking services. Periodic returns based on turnover.

Personal income tax of 0% up to €24,000, 5% up to €40,000, then 10% maximum; Andorran company dividends exempt; no taxation on wealth or on wealth transfer.

By choosing the right residency status, balancing pay against dividends, and structuring appropriately (company, holding, asset-holding company). Start with our tax simulator, then we'll refine it together.

Protection of family wealth, transfer with no duties, reduced taxation on income, and recognised, stable structuring tools (family holding company, asset-holding company).

Yes: double taxation treaties with France (2015), Spain, Luxembourg, Portugal, and a growing network of countries, plus automatic information exchange under OECD standards.

Yes — it's one of the most powerful tools in the Andorran system, provided there's genuine substance and compliant structuring. See our dedicated holding company page.

Complete support: company formation, accounting, IGI and tax returns, social security management, strategic advice, and our Booster 360° management platform.

Yes — from reserving the company name to registration, including administrative and banking formalities. You sign, we orchestrate.

Both: entrepreneurs applying for active residency and investors applying for passive residency, from preparing the file through to issuing the permit and its renewals.

Yes, as well as annual corporate tax or personal income tax returns, on time and in full compliance with Andorran law.

Fully: taxes, CASS contributions, payroll where applicable, and filing annual accounts with the Register.

Yes: opening bank accounts, driving licences, work permits, insurance — everything involved in a successful move to the Principality.

Yes. We prepare KYC files, present your project to partner Andorran banks (MoraBanc, Andbank, Creand), and follow the account opening through to activation.

Rigorous, personalised support. A dedicated point of contact has full command of your file and stays with you at every stage, from the launch of your project through to its completion. Closeness, high standards and reliability: that is our team's commitment.

Through this website's form, by email at [email protected], or on +376 755 077. The first conversation, by video call or at our Andorra la Vella office, is confidential and comes with no obligation.